Regarding the topic, your explanation of the Fed's lose-lose choice is so clear, just like your last articles on this subject. How do central banks even begin to model such a probleme?
Thank you and that's a great question! It would seem they have competing mandates at this juncture: Keep employment high (low unemployment) just at a time when businesses will begin cutting jobs WHILE AT THE SAME TIME prices are rising due, in part, to tariffs.
The whole thing probably could have been avoided had Trump not started with the tariffs. Rates would have been easier to lower. But now, not so much.
Regarding the topic, your explanation of the Fed's lose-lose choice is so clear, just like your last articles on this subject. How do central banks even begin to model such a probleme?
Thank you and that's a great question! It would seem they have competing mandates at this juncture: Keep employment high (low unemployment) just at a time when businesses will begin cutting jobs WHILE AT THE SAME TIME prices are rising due, in part, to tariffs.
The whole thing probably could have been avoided had Trump not started with the tariffs. Rates would have been easier to lower. But now, not so much.